General Assembly Raised Bill No. 6237
January Session, 2011 LCO No. 2416
*02416_______INS*
Referred to Committee on Insurance and Real Estate
Introduced by:
(INS)
General Assembly
Raised Bill No. 6237
January Session, 2011
LCO No. 2416
*02416_______INS*
Referred to Committee on Insurance and Real Estate
Introduced by:
(INS)
AN ACT CONCERNING INSURANCE REQUIRED UNDER THE COMMON INTEREST OWNERSHIP ACT.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsections (a) and (b) of section 47-255 of the general statutes are repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
(a) Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available and subject to reasonable deductibles: (1) Property insurance on the common elements and, in a planned community, also on property that must become common elements, insuring against those risks of direct physical loss commonly insured against, which insurance, after application of any deductibles shall be not less than eighty per cent of the actual cash value of the insured property at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations and other items normally excluded from property policies; (2) flood insurance in the event the condominium is located in a flood hazard area, as defined and determined by the National Flood Insurance Act, as amended, USC 42 Section 4101, P.L. 93-234, and the unit owners by vote direct; (3) commercial general liability insurance, including medical payments insurance, in an amount determined by the executive board but not less than any amount specified in the declaration, covering all occurrences commonly insured against for bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the common elements and, in cooperatives, also of all units; and (4) fidelity insurance.
(b) In the case of a building that contains units divided by horizontal boundaries described in the declaration, or by vertical boundaries that comprise or are located within common walls between units, the insurance maintained under subdivision (1) of subsection (a) of this section, to the extent reasonably available, shall include the units, and all improvements and betterments installed by unit owners, unless the declaration limits the association's authority to insure all improvements and betterments or the executive board decides, after giving notice and an opportunity for unit owners to comment, not to insure such improvements and betterments. In the case of common interest communities containing more than twelve units, unless the association insures all improvements and betterments, the association shall:
(1) Prepare and maintain a schedule of the standard fixtures, improvements and betterments in the units, including any standard wall, floor and ceiling coverings covered by the association's insurance policy;
(2) Provide such schedule at least annually to the unit owners in order to enable unit owners to coordinate their homeowners insurance coverage with the coverage afforded by the association's insurance policy; [and]
(3) Include such schedule in any resale certificate prepared pursuant to section 47-270; and
(4) For any insurance policy required pursuant to subsection (a) of this section, annually obtain rate quotes from at least two different insurance agencies for such policy. If a managing agent of such association or a person providing association management services to such association obtains the rate quotes on behalf of such association, such managing agent or person shall provide such quotes to the executive board of such association.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2011 47-255(a) and (b)
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2011
47-255(a) and (b)
Statement of Purpose:
To require common interest community associations to obtain on an annual basis rate quotes for insurance required to be maintained by such associations from at least two different insurance agencies.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]